Real Estate Developments in Coimbatore

Real estate developers in Coimbatore have embarked on mid-range and large-scale projects in association with builders from North and South India and abroad. Pegasus Realty LLC of Dubai is expected to invest through a joint venture in a residential project. Presidium Constructions Coimbatore (P) Limited is planning an IT Park here as a joint venture with a major MNC and a venture capitalist at a cost of Rs. 40 crore.

There is an increasing demand for residential property in Coimbatore in the mid range bracket of Rs 15-Rs 20 lakh, giving a fillip to construction activity. Property developers from outside Coimbatore like Appaswamy Real Estates of Chennai, Raheja and L&T have made investments in up market apartments in the city in the price range of Rs 40-Rs 45 lakh.

2 malls covering 2.5 lakh sq. ft area and 6 more are on the anvil spanning 4.2 lakh sq.ft. while 2 major townships  have been announced by Sahara Township and Metro Corp Monte Visa In addition, more than 20 major residential units comprising 3,000 apartments, will be ready for possession by 2010.

The demand for commercial property from new businesses in the city is not yet being met with an adequate supply. Medium scale developers are offering compact office spaces in the 10,000 to 30,000 sq ft range. Rent of commercial properties in Coimbatore starts from Rs 13 per sq ft per month depending on the location and the banner of the builder.

Appreciation

Land prices have been swinging between 50 to 100% over the last year, more so in select areas like R.S. Puram and Gandhi Nagar, in contrast to an average 25 to 30 % increase every year.

Apartment rates in Coimbatore range from Rs 1,700 to Rs 2,600 per sq ft depending on the location, builder and the facilities embedded in the project. Race Course Road saw an appreciation of 15 to 30 %, where the prevailing rate is over the average at Rs 3,000 per sq ft. Race Course Road, R.S. Puram, Peelamedu, Vadavalli and areas leading to Tiruchi Road have witnessed the most appreciation in prices in the last 2 years.

Land rates in Coimbatore’s Race Course Road center around Rs.10 lakh per cent, while R.S.Puram fetches between Rs.7 lakh to Rs.9 lakh a cent. Mettupalayam Road shows good promise where rates are between Rs.2.5 and Rs.3 lakh a cent.

Investors in Coimbatore’s real estate have little reason to worry of a deceleration in prices as the market is driven by end-users with a high disposable income. Banks have seen a quantum jump in the home loans disbursed in Coimbatore over the last 2 years.

Occupancy in shopping malls is almost full as against 40 to 50 % two years ago. Rental values in malls start with Rs 20 per sq ft per month. Accelerated business has seen a sudden burst of interest from the hospitality sector with the Taj Group, Meridian and others drawing up plans for the city.

NRI Real Estate Trends in Coimbatore

The city has found favour amongst non resident Indians from Tamil Nadu who have invested quite heavily in residential properties in Coimbatore. Developers, encouraged by the trend, have developed deluxe apartments and houses to meet their needs. Trident properties is developing Serenity, a 146 apartment  sprawling complex on Nanjundapuram Road equipped with a skating rink, jogging track, video door phone, children's play ground, crèche and back-up generator for common utilities.

Also on Nanjundapuram Road is Mayflower's Sakthi Gardens which offers health and entertainment avenues with exclusive play areas for children, indoor courts for volleyball and tennis, a swimming pool and a shopping arcade.

Mahaswetha Manor is a select property on NSR Road built by Matrix Foundations with just 12 designer homes in the range of Rs.1.25 crore to Rs.2.00 crore. Puravankara is planning a mixed-use property covering 2.2 million sq. ft on Trichy Road.

Gee Dee Associates is developing Western Creek, a set of customised farm houses on the foothills of the Western Ghats, an hour’s drive from Coimbatore. Investors can choose between 2-3 bedroom cottages or 3-4 bedroom villas.

Jains West Hills apartments on centrally located Sowripalayam road, is an extraordinary apartment complex from Jain Housing near Meena Estate in Coimbatore comprising 72 two and three bedroom deluxe apartments with sizes ranging from 1000 sq. ft to 1500 sq. ft. Jains Surabhi  in Peelamedu is another aesthetically appealing 148 apartment complex also from Jain Housing.

Shriram Properties Ltd (SPL), part of the Shriram Group is developing a residential project in Coimbatore at an investment of Rs 120 crore. The Shriram Vijaya Hyyde Park, offering a combination of 272 two and three-bedroom apartments and 32 villas, is located on a 8.15-acre plot behind Bharathi Colony in Peelamedu. The complex, complete with a gym, pool and play area, would be ready by 2008. Apartments range between Rs.32 lakh to Rs.42 lakh, and the villas cost over Rs.85 lakh

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